Early Weakness in Both Markets... KOSPI Starts Down 0.7%

Reflecting the Decline of the Three Major U.S. Indices
Significant Drops in Sectors Such as Semiconductors

Both the KOSPI and KOSDAQ markets started on the 24th with nearly a 1% decline. The sharp drop in the U.S. stock market on the last trading day of last week was directly reflected in the domestic stock market.

On this day, the KOSPI opened at 2,636.12, down 0.70% from the previous trading day. It then recorded 2,643.51 as of 9:22 a.m. The decline appears to reflect the impact of major U.S. stock indices closing lower on the last trading day of last week.

Earlier, on the 21st (local time), the Standard & Poor's (S&P) 500 index closed at 6,013.13, down 1.7% from the previous trading day. The tech-heavy Nasdaq index also fell 2.2% to 19,524.01 compared to the previous day. The Dow Jones Industrial Average closed at 43,428.02, down 1.69%. All three indices showed their largest drops this year. This is interpreted as concerns over economic slowdown growing due to a flood of negative economic indicators and rising expected inflation.

From the start of trading, both foreign investors and institutions have been net sellers. Foreigners sold a net 49.6 billion KRW, and institutions sold a net 31.0 billion KRW. Only individual investors were net buyers, purchasing 78.5 billion KRW.

Most sectors are in decline. The electrical and electronics sector saw the largest drop at -1.55%. This was followed by machinery and equipment (-1.26%), textiles and apparel (-1.01%), and pharmaceuticals (-0.73%). Transportation and warehousing (4.49%) and telecommunications (0.84%) rose.

Most of the top 10 market capitalization stocks were also weak. SK Hynix (-3.1%), Samsung Electronics (-1.5%), Samsung Biologics (-1.2%), Celltrion (-0.6%), Kia (-0.5%), and Hyundai Motor (-0.4%) declined. LG Energy Solution (1.0%), KB Financial (0.3%), and NAVER (0.2%) rose.

The KOSDAQ also started trading at 766.94, down 1% from the previous trading day. It then slightly rebounded to 769.48 as of 9:22 a.m.

In the KOSDAQ market as well, foreigners and institutions were net sellers of 35.3 billion KRW and 32.8 billion KRW, respectively. Only individual investors were net buyers, purchasing 74.8 billion KRW.

Most sectors are also falling. Several sectors showed drops exceeding 1%, including machinery and equipment (-1.47%), chemicals (-1.34%), entertainment and culture (-1.34%), and other manufacturing (-1.05%). Construction (0.88%) and publishing and media reproduction (0.82%) showed slight gains.

Most of the top market capitalization stocks were down. Several stocks fell more than 1%, including Rino Industrial (-2.6%), Alteogen (-1.5%), Rigachem Bio (-1.4%), Rainbow Robotics (-1.2%), and Classys (-1.0%). Samchundang Pharm (1.6%) and EcoPro BM (0.4%) rose.